There has been a steep rise in purchase figures made through e-commerce platforms recently. As a result, traditional stores are generating less revenue than online retail stores. The possible reason can be the growing number of online retail platforms. However, centralized management, data tampering, high investment and risk involved in the transactions have plagued their adoption. Blockchain app development can address all these problems with its decentralized, unchangeable and secure nature. Let’s take a look at how business solutions built using blockchain technology can revolutionize the online retail business.
According to NASDAQ, the combined market capitalization of the two big American retail giant Walmart and Target is still $100 billion behind the online giants like Amazon and Alibaba.
Nonetheless, despite all the benefits that online retail businesses offer, they still need to evolve to address evolving challenges. Those challenges include things like restriction in making choices, hefty commission for the platforms as middlemen, and the dependence of buyers and manufacturers on sellers.
In such circumstances, small manufacturers who produce different goods suffer a lot. Firstly, they lack resources to compete with big companies.
And secondly, the products of the private manufacturers are beaten in competition with their low-quality and cheap imitations. The business of many startup owners ends after the first batch of products even though they made it in crowdfunding campaigns. They lack money and time to expand their production unit. Buyers get no choice except accepting retailers’ markup, which is expected to go as high as 300%.
Now, blockchain provides solutions to create retail platforms that directly connect both buyers and manufacturers. Then, they don’t need to bother about middlemen networks. So, blockchain can prove a game-changer for online retail.
To survive in the market, blockchain is the best solution. The decentralized blockchain tech helps to connect a manufacturer with a buyer. Altogether, a seller has no pain to set up delivery and payment systems because blockchain secure platform handles all its work.
The main issue is trust between buyers and sellers. So, using smart contracts and an identity verification system builds trust between them. The retail platform based on blockchain solutions gives access to a wide range of special products that are hard to locate in the regular online retail platform. Besides, the strong point is that nonexistence of middlemen here provides a chance to sell goods at a reasonable or not marked-up price.
Thus, this is how Blockchain solutions in online retail sectors are changing the way the business operates. It has also already made a strong impact in manufacturing industries as blockchain keeps tracks on the products through the entire supply chain.